WEBVTT - Senate Passes $550 Billion Infrastructure Plan in Win for Biden

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<v Speaker 1>This is Bloomberg Business Week. I'm Carol Masser and I'm

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<v Speaker 1>Bloomberg Quick Takes Tim Stanovk. We're here every day bringing

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<v Speaker 1>Week reporters and editors, not to mention our journalists and

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<v Speaker 1>You can also listen to our radio show at two

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<v Speaker 1>pm Eastern Time on Bloomberg Radio, or watch us on

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<v Speaker 1>YouTube search Bloomberg Clovel News. Hospitals generally across the US,

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<v Speaker 1>they are parceling out beds for COVID patients, hunting for

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<v Speaker 1>doctors and nurses as a delta variant sweeps from coast

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<v Speaker 1>to coast. Let's get an update though on COVID. Let's

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<v Speaker 1>bring in Dr Ty Glackwin, his director of cardiovascular analytics

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<v Speaker 1>at Providence Sant Joseph's Health. You might recall we've talked

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<v Speaker 1>to many of their team over the last year and

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<v Speaker 1>a half. It is one of the largest health care

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<v Speaker 1>systems in the US massive and it also has more

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<v Speaker 1>than fifty hospitals in seven states, lots of clinics, lots

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<v Speaker 1>of care of ours, and they were home to the

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<v Speaker 1>first confirmed COVID case back in early Dr Gluckman joining

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<v Speaker 1>us on the phone in Portland, Oregon. Dr Gluckman, nice

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<v Speaker 1>to have you here, Um, Bloomberg Radio, how are you.

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<v Speaker 1>I'm great. It's a pleasure to be with you. I

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<v Speaker 1>hope you're staying safe and doing well. We are. We

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<v Speaker 1>are trying and trying to, you know, assess all of

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<v Speaker 1>the headlines that are out there. Um, you know, you guys.

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<v Speaker 1>What's interesting is have done a study recently, and I

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<v Speaker 1>think this is something that we need to bring to

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<v Speaker 1>everybody's attention about what's happening to some patients. And we're

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<v Speaker 1>not talking about COVID patients. Why don't you get us

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<v Speaker 1>up to speed on that. Yeah, So, for many of

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<v Speaker 1>us in the early surge in the spring of last year,

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<v Speaker 1>in we're observing the hospitalization rates, emergency department rates, people

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<v Speaker 1>coming to the hospital. We're wayed down. And we've seen

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<v Speaker 1>several reports that have come out in the United States

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<v Speaker 1>and outside the United States suggesting a reduction in hospitalization

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<v Speaker 1>rates and even heightened mortality death rates for people hospitalized.

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<v Speaker 1>So we sought to better understand the cross are six

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<v Speaker 1>of our states and fifty one hospitals across a broad

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<v Speaker 1>range of different conditions. What were the hospitalization rates looking like,

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<v Speaker 1>What were the death rates looking like, both in the

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<v Speaker 1>spring surge of as well as the fall surge late

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<v Speaker 1>this past fall, and what what did you find? So,

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<v Speaker 1>you know, a bunch to the disappointment, We saw similar

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<v Speaker 1>things that had been observed previously, so in the spring surge,

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<v Speaker 1>and this is compared to a period of time pre pandemics.

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<v Speaker 1>We saw that our unplanned hospitalizations, so these are people

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<v Speaker 1>coming in for urgent conditions, and patients with COVID nineteen

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<v Speaker 1>were excluded from the studies, so these are unrelated to

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<v Speaker 1>COVID nineteen hospitalizations. Unplanned hospitalizations declined very abruptly, dropping by

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<v Speaker 1>as much as fifty five zero percent from a period

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<v Speaker 1>of early March through mid May, and then there was

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<v Speaker 1>a rise back up again beyond that initial surge, but

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<v Speaker 1>not to the same rates that the otherwise would have

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<v Speaker 1>been in terms of hospitalizations falling again in a fall

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<v Speaker 1>period from late October through late December as well. And

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<v Speaker 1>so we observed that during periods of surge of COVID nineteen.

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<v Speaker 1>We saw that hospitalizations across our different states fell precipitously

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<v Speaker 1>during both periods of time. In addition to this, we

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<v Speaker 1>looked at mortality rates adjusted in hospital death rates for

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<v Speaker 1>people who are hospitalized during those periods of time and

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<v Speaker 1>those rows during both periods. So while hospitalization rates were falling,

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<v Speaker 1>there was an increase in the death rates for people

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<v Speaker 1>during that initial spring and again in that false surge

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<v Speaker 1>as well. Very disheartening across the different states and across

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<v Speaker 1>a broad range of conditions that we evaluated. And so

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<v Speaker 1>the conclusion here is that essentially people aren't getting the

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<v Speaker 1>care that they need in hospitals, either putting it off

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<v Speaker 1>or ignoring things, whether out of concerns about being in

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<v Speaker 1>hospitals or what have you, I'm assuming, and so as

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<v Speaker 1>a result, that is leading to potentially complications in their health,

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<v Speaker 1>and it sounds like also leading to death. Yeah, So

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<v Speaker 1>there are a bunch of potential takeaways from this, but

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<v Speaker 1>one of which is is that there has been a

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<v Speaker 1>spillover effect during the pandemic. And while we can't definitively

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<v Speaker 1>determine why people stayed away or why people died at

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<v Speaker 1>a higher rate. One of the biggest concerns that are

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<v Speaker 1>to take away from this is that patients, out of

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<v Speaker 1>concern of potentially contracting infection with stars Coby two getting

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<v Speaker 1>COVID nineteen, that they stayed away from hospitals, from emergency departments,

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<v Speaker 1>from clinics, and therefore when they ultimately presented for these urgent,

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<v Speaker 1>unplanned hospitalizations, they were that much sicker when they ultimately

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<v Speaker 1>were hospitalized, and that accounts for their higher mortality rate.

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<v Speaker 1>How are you do in an outreach to your community.

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<v Speaker 1>Obviously they are patients, are doctors who have patients um

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<v Speaker 1>that they know maybe are in compromise states or could be.

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<v Speaker 1>How are you reaching out to your community to tackle this.

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<v Speaker 1>It's a great question, and it was important during the

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<v Speaker 1>spring sturge. It's important the false surge. But I can

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<v Speaker 1>tell you we weren't anticipating when we initially designed the

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<v Speaker 1>study that we'd be sitting in a surge today going

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<v Speaker 1>on and across the United States, and so I think

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<v Speaker 1>it's really important to unambiguously emphatically let our patients know

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<v Speaker 1>that our clinics, are emergency departments, are hospitals, are safe

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<v Speaker 1>places to receive care, and so in patients who are

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<v Speaker 1>concerned about their health, they should not hesitate to contact

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<v Speaker 1>emergency medical services, call, come to their clinics, reach out

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<v Speaker 1>to their clinicians, come to the emergency department, because the

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<v Speaker 1>consequences of delaying their care can be quite significant. I

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<v Speaker 1>want to get back to Dr Ty Gluckman. He's director

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<v Speaker 1>of the Center for Cardiovasular Analytics at Providence St. Joseph's

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<v Speaker 1>Health with us on the phone from Portland, Oregon. You know,

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<v Speaker 1>it's interesting, Dr Gluckman, this is something that we have

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<v Speaker 1>talked about with many members of the medical community. Throughout

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<v Speaker 1>the pandemic. There was that concern and understandably as hospitals

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<v Speaker 1>were overwhelmed that they had to prioritize COVID patients. How

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<v Speaker 1>are hospitals managing both COVID patients and regular routine medical

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<v Speaker 1>treatments at this point. Are you finding where there are

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<v Speaker 1>areas of surge that you can't manage both, or have

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<v Speaker 1>hospitals figured out a way to do both at the

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<v Speaker 1>same time. Yeah, it's a great question, and I think

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<v Speaker 1>early on we were struggling. Certainly during the initial spring

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<v Speaker 1>surgeon I will say across all of our hospitals. While

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<v Speaker 1>we've seen in our communities rising CAITH counts, I think

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<v Speaker 1>we're doing a great job of balancing both and making

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<v Speaker 1>sure that patients feel safe if they're dealing and struggling

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<v Speaker 1>with COVID nineteen to receive the appropriate care they need

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<v Speaker 1>if they need it in our emergency departments are in

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<v Speaker 1>our hospital. But similarly, for those individuals that are not

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<v Speaker 1>dealing with COVID Night Team, but are dealing with critical

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<v Speaker 1>illness urgent medical conditions, they should feel very comfortable in

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<v Speaker 1>seeking out care. We found ways to be able to

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<v Speaker 1>provide that care in the outpatient setting and certainly in

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<v Speaker 1>our hospitals and emergency departments as well. Yeah, it does

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<v Speaker 1>feel like you know, we said man I said so

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<v Speaker 1>many times, we didn't have the playbook right, None of

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<v Speaker 1>us had the playbook pre pandemic, despite warnings that have

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<v Speaker 1>been out there for years. It's something like this would

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<v Speaker 1>ultimately come. Um, how has that playbook filled up in

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<v Speaker 1>your view that we are in a better position even

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<v Speaker 1>with these new surges and what other new surges may

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<v Speaker 1>come as a result of future variants. How is that

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<v Speaker 1>playbook better equipped at this point? Yeah, I believe that

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<v Speaker 1>early on we were struggling even in things like having

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<v Speaker 1>adequate amounts of PPE, making sure that we had ventilators

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<v Speaker 1>for those patients who had lung related conditions that warranted it.

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<v Speaker 1>I think today now we're just trying to make sure

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<v Speaker 1>that we are prioritizing here for those people who need

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<v Speaker 1>it most in our emergency departments and in our hospitals.

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<v Speaker 1>I want to reaffirm that you know, our hospitals and

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<v Speaker 1>emergency departments are safe places to receive care, and we

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<v Speaker 1>have the ability to care for people who need care

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<v Speaker 1>in those different specific settings. UM. I think also we

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<v Speaker 1>figured out a way to be able to have our

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<v Speaker 1>clinical teams UH and the range of different clinicians and

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<v Speaker 1>care team members involved, whether it's in the outpatient setting,

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<v Speaker 1>leveraging where appropriate virtual care, tell health strategies in the hospital,

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<v Speaker 1>making sure that we're adequately resourced to be able to

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<v Speaker 1>attend to all the needs patients have. So I feel

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<v Speaker 1>like we're at a very good place to be able

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<v Speaker 1>to deliver the care that's needed, whether it's related to

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<v Speaker 1>COVID nineteen or it's an unplanned need to come to

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<v Speaker 1>the hospital for something completely unrelated to COVID. Night Team

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<v Speaker 1>I Almoso curious, you know, as you talk about this

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<v Speaker 1>study that you did, UH and people who are maybe

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<v Speaker 1>putting off, you know, coming into hospitals for different reasons,

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<v Speaker 1>how much of kind of routine treatment is still down

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<v Speaker 1>from where it was at pre pandemic levels. So I

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<v Speaker 1>think our capacity to be able to accommodate a lot

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<v Speaker 1>of basic preventive care and then usual chronic medical care

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<v Speaker 1>is back up to where we need it to be.

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<v Speaker 1>I think one of the challenges that exist is how

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<v Speaker 1>do we reassure patients who are dealing with an acute

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<v Speaker 1>unexpected illness or those that are continuing to seek treatment

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<v Speaker 1>for chronic, longstanding medical conditions that they need to connect

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<v Speaker 1>with their care teams, with their clinicians, whether in the

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<v Speaker 1>outpatient setting or elsewhere, to make sure that they're getting

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<v Speaker 1>the care that they need. For quite a while, patients

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<v Speaker 1>at a much greater weight than we would otherwise want,

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<v Speaker 1>we're putting off or potentially foregoing care, delaying care. Um.

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<v Speaker 1>I think it's long pass ado that we need to

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<v Speaker 1>make sure that patients with chronic illnesses receive all of

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<v Speaker 1>the on getting care that they need and again be

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<v Speaker 1>prepared in the clinic setting to be responsive to people

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<v Speaker 1>who have acute EXAs, asturbations of longstanding medical conditions, or

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<v Speaker 1>something altogether new. And for those peoples that need to

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<v Speaker 1>go to the emergency department understanding it's a safe place,

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<v Speaker 1>they should not hesitate to call nine C E M.

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<v Speaker 1>S Services when getting to the emergency department. The capacity

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<v Speaker 1>you said is back to where it needs to be.

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<v Speaker 1>What about utilization though, That's what I'm curious about. Where

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<v Speaker 1>patients are actually tapping hospitals. How much down is that

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<v Speaker 1>from pre pandemic levels. We still across the United States,

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<v Speaker 1>and I would say in our health system are seeing

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<v Speaker 1>lower rates of using utilizing our emergency departments that we

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<v Speaker 1>would otherwise like. UM, so we know that there is

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<v Speaker 1>a capacity that exceeds what is being utilized at least

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<v Speaker 1>comparing that to pre pandemic levels going back prior to

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<v Speaker 1>March of and so we know that there are more

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<v Speaker 1>people out there who need our services that are actually

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<v Speaker 1>utilizing it. Unrelated to COVID nineteen and so. Uh, it's

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<v Speaker 1>opportunities like this to re affirm to patients that they

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<v Speaker 1>should feel very comfortab able seeking the care that they need.

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<v Speaker 1>That's true in our clinics. It does vary across different conditions,

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<v Speaker 1>But regardless of the condition, regardless of the chronicity or

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<v Speaker 1>acuity of their condition, we have the capacity and the

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<v Speaker 1>ability to be able to help take care of you. So,

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<v Speaker 1>because we have you here, I've got to ask you,

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<v Speaker 1>what are you seeing in terms of COVID cases right now?

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<v Speaker 1>So we're seeing upticks. I'm out in Portland, Oregon, and

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<v Speaker 1>we're seeing an uptick overall compared to where we have been.

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<v Speaker 1>I think it's reflective of several parts of the country, UM,

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<v Speaker 1>in our communities UM. And it is disconcerting. UM. And

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<v Speaker 1>I think for many of us, we thought we would

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<v Speaker 1>we be well behind this, whether we're in the clinical

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<v Speaker 1>community or not. UM, it's very disheartening to see the

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<v Speaker 1>rising cases and rising hospitalization rates. And while it's a

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<v Speaker 1>rate that is UH and an ability to be able

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<v Speaker 1>to tackle it that's much better equipped than we were

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<v Speaker 1>a year ago and earlier. UM, I would say, it's

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<v Speaker 1>still is challenging for those of us who thought we'd

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<v Speaker 1>be in a much better place than we are today.

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<v Speaker 1>Is it typically younger? Is it people who are unvaccinated,

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<v Speaker 1>which is certainly some of the stories that we've done

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<v Speaker 1>a lot here at Bloomberg is that the trends that

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<v Speaker 1>you're seeing, we're continuing to see that individuals who are

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<v Speaker 1>who have not been vaccinated disproportionately represent individuals who are

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<v Speaker 1>coming down with COVID nineteen and certainly requiring hospitalizations as well. UM.

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<v Speaker 1>And I think this is again a reaffirmation of the

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<v Speaker 1>importance of vaccination as the single most important individual tactic

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<v Speaker 1>to help prevent severe illness and illness in general. Are

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<v Speaker 1>you seeing as a result in uptick in vaccinations um

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<v Speaker 1>as a result of the rise in delta cases once again,

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<v Speaker 1>so we've been fortunate Oregon to at least succeed what

0:12:49.679 --> 0:12:52.720
<v Speaker 1>the national average has been in terms of vaccination. That

0:12:52.840 --> 0:12:56.400
<v Speaker 1>being said, there's always room for improvement, and so we

0:12:56.440 --> 0:13:01.760
<v Speaker 1>continue to reinforce pretty emphatically the importance of getting vaccinated

0:13:02.559 --> 0:13:05.920
<v Speaker 1>for all individuals who are eligible. UH. It is a

0:13:06.000 --> 0:13:09.760
<v Speaker 1>key tactic to be able to help mitigate the risk

0:13:09.800 --> 0:13:13.080
<v Speaker 1>of consequences. And for those of us who have been

0:13:13.120 --> 0:13:17.040
<v Speaker 1>at this for an excess of fifteen months, it is

0:13:17.160 --> 0:13:21.840
<v Speaker 1>extraordinarily disheartening to see individuals with severe illness or ultimately

0:13:21.960 --> 0:13:25.080
<v Speaker 1>succumbing to something that is ultimately preventable. And I have

0:13:25.160 --> 0:13:28.960
<v Speaker 1>to say within my sphere of friends and family and colleagues,

0:13:29.000 --> 0:13:30.679
<v Speaker 1>I mean I do know people who have had some

0:13:30.800 --> 0:13:34.960
<v Speaker 1>really difficult illnesses and have gotten incredible care throughout the

0:13:34.960 --> 0:13:38.120
<v Speaker 1>pandemic um and just and didn't put things off and

0:13:38.400 --> 0:13:40.920
<v Speaker 1>couldn't it was really kind of a life and death issue.

0:13:41.360 --> 0:13:45.240
<v Speaker 1>Having said that, you know, remind our audience that's something

0:13:45.280 --> 0:13:49.560
<v Speaker 1>that can be in the early stages or something that

0:13:49.679 --> 0:13:53.160
<v Speaker 1>is manageable, how quickly it can become a much more

0:13:53.160 --> 0:13:56.280
<v Speaker 1>difficult health situation and really quickly, I mean not you

0:13:56.360 --> 0:14:01.080
<v Speaker 1>speaking quickly, but how the situation get involved very quickly. Absolutely,

0:14:01.120 --> 0:14:04.160
<v Speaker 1>and so people can go from a relatively stable state

0:14:04.240 --> 0:14:07.640
<v Speaker 1>to one being very decompensated very quickly. And our range

0:14:07.640 --> 0:14:11.600
<v Speaker 1>of therapeutic options therapies that we have available have significantly

0:14:11.640 --> 0:14:13.920
<v Speaker 1>improved compared to where we were more than a year ago.

0:14:14.440 --> 0:14:17.960
<v Speaker 1>So for those individuals that have been infected with stars

0:14:17.960 --> 0:14:21.320
<v Speaker 1>SCOBE two who have developed COVID nineteen, seeking medical attention

0:14:21.360 --> 0:14:23.680
<v Speaker 1>as soon as possible is of key importance because our

0:14:23.800 --> 0:14:27.640
<v Speaker 1>range of therapies are much greater than what we had

0:14:27.880 --> 0:14:30.240
<v Speaker 1>more than a year ago. I think the second thing

0:14:30.280 --> 0:14:33.240
<v Speaker 1>is just to reaffirm that for all individuals who are eligible.

0:14:33.320 --> 0:14:36.920
<v Speaker 1>Vaccination is a key importance, and I would say to

0:14:36.960 --> 0:14:40.280
<v Speaker 1>all of my clinical colleagues across the United States and elsewhere,

0:14:40.800 --> 0:14:43.760
<v Speaker 1>UM I spend each day when I'm in clinic asking

0:14:43.800 --> 0:14:46.280
<v Speaker 1>each patient about whether or not they've been vaccinated for

0:14:46.320 --> 0:14:49.680
<v Speaker 1>those that are eligible, and really, at least under Betty,

0:14:49.720 --> 0:14:53.280
<v Speaker 1>getting a better understanding of why people may be resistant.

0:14:53.280 --> 0:14:55.680
<v Speaker 1>I think for those of us that are in the

0:14:55.720 --> 0:14:59.520
<v Speaker 1>clinical community, we are often amongst the most trusted individuals

0:14:59.560 --> 0:15:02.280
<v Speaker 1>when work with our patients and loved ones, and they

0:15:02.280 --> 0:15:04.440
<v Speaker 1>are more likely to listen to us, perhaps than others,

0:15:04.520 --> 0:15:07.640
<v Speaker 1>and so we play a key role in helping to

0:15:07.640 --> 0:15:11.360
<v Speaker 1>help patients and their loved ones understand why if there

0:15:11.400 --> 0:15:15.880
<v Speaker 1>are misgivings or uncertainty about getting vaccinated, how some of

0:15:15.960 --> 0:15:19.560
<v Speaker 1>the concerns can be addressed through just discussion talk and

0:15:19.600 --> 0:15:22.600
<v Speaker 1>making sure they understand where we're coming from. We understand

0:15:22.640 --> 0:15:27.920
<v Speaker 1>where they're coming from and why we're advocating strongly for vaccination. So,

0:15:28.520 --> 0:15:31.280
<v Speaker 1>just as we wrap up, I wonder Dr Gluckman, if

0:15:31.400 --> 0:15:35.560
<v Speaker 1>you have any confidence in terms of the visibility of

0:15:35.560 --> 0:15:38.440
<v Speaker 1>where we are six months from now or twelve months

0:15:38.440 --> 0:15:42.560
<v Speaker 1>from now when it comes to the pandemic and kind

0:15:42.560 --> 0:15:45.480
<v Speaker 1>of getting back to quote unquote normal, although I don't

0:15:45.520 --> 0:15:47.160
<v Speaker 1>think it's it's going to be a new normal, right

0:15:47.160 --> 0:15:51.920
<v Speaker 1>because we've lived through so much. Yeah, I think unfortunately,

0:15:51.960 --> 0:15:54.160
<v Speaker 1>this is going to be with us for a while.

0:15:54.560 --> 0:15:57.080
<v Speaker 1>And my hope is that the case rates continue to fall.

0:15:57.160 --> 0:16:01.280
<v Speaker 1>But getting vaccinated to to gave the risk of new

0:16:01.400 --> 0:16:04.400
<v Speaker 1>variants developing is going to be of key importance. The

0:16:04.480 --> 0:16:06.280
<v Speaker 1>other thing I would say is a key takeaway is

0:16:06.320 --> 0:16:09.200
<v Speaker 1>for those of us that work within health systems, you know,

0:16:09.440 --> 0:16:11.600
<v Speaker 1>never in my lifetime would I ever have expected, nor

0:16:11.640 --> 0:16:14.200
<v Speaker 1>have ever experienced anything like this. And so how do

0:16:14.280 --> 0:16:18.840
<v Speaker 1>we prevent the next pandemic, the next major medical problem

0:16:19.160 --> 0:16:22.080
<v Speaker 1>that does occur. How do we make sure we're well prepared,

0:16:22.440 --> 0:16:26.440
<v Speaker 1>that we as a health care system communicate very clearly

0:16:26.520 --> 0:16:30.000
<v Speaker 1>too at risk individuals to patients what is important, so

0:16:30.040 --> 0:16:32.760
<v Speaker 1>we don't see the direct consequences as a result of

0:16:32.760 --> 0:16:37.000
<v Speaker 1>the pandemic and infection, but also as our study sought

0:16:37.040 --> 0:16:42.200
<v Speaker 1>to evaluate the indirect consequences, the secondary or carryover effects

0:16:42.240 --> 0:16:47.200
<v Speaker 1>as a result of fear uncertainty, making sure that health systems, hospitals,

0:16:47.240 --> 0:16:50.320
<v Speaker 1>emergency departments, clinics are safe places and that we're well

0:16:50.320 --> 0:16:53.200
<v Speaker 1>prepared to take care of patients regardless. Have you guys

0:16:53.200 --> 0:16:56.840
<v Speaker 1>at Providence St. Joseph Health, have you guys taken specific

0:16:56.880 --> 0:17:01.520
<v Speaker 1>steps so that you're ready next time around? Continue much

0:17:01.600 --> 0:17:04.840
<v Speaker 1>like we're in the surge today, to go through innumerable

0:17:04.880 --> 0:17:08.440
<v Speaker 1>steps to make sure we're well prepared with multiple redundancies.

0:17:08.680 --> 0:17:10.640
<v Speaker 1>And I really want to credit our leadership in our

0:17:10.760 --> 0:17:14.879
<v Speaker 1>organization who has done a superbly stellar job of making

0:17:14.880 --> 0:17:19.800
<v Speaker 1>sure that we are well prepared for additional waves should

0:17:19.840 --> 0:17:23.000
<v Speaker 1>they occur, as well as the next pandemic. We spend

0:17:23.000 --> 0:17:25.840
<v Speaker 1>a lot of time preparing for this, for other types

0:17:26.040 --> 0:17:30.719
<v Speaker 1>of disasters, whether they be natural, whether they be infectious. UM.

0:17:30.760 --> 0:17:33.080
<v Speaker 1>It doesn't take anything away from the fact that we

0:17:33.119 --> 0:17:36.280
<v Speaker 1>continue as a health care system to struggle with the

0:17:36.920 --> 0:17:40.479
<v Speaker 1>toll of just this being such a long lasting UH

0:17:40.640 --> 0:17:44.600
<v Speaker 1>seeming like it has never ended UH events. But nonetheless,

0:17:44.640 --> 0:17:47.800
<v Speaker 1>we will get through this UH. And importantly, we want

0:17:47.840 --> 0:17:49.960
<v Speaker 1>to make sure that all of our patients stay safe

0:17:50.080 --> 0:17:52.640
<v Speaker 1>as much as possible, as we continue to make the

0:17:52.640 --> 0:17:56.080
<v Speaker 1>therapies available, as we continue to address non COVID night

0:17:56.119 --> 0:17:59.520
<v Speaker 1>team related illness along with that related to the infection

0:17:59.560 --> 0:18:02.000
<v Speaker 1>as well. Well. Listen, thank you so much for all

0:18:02.080 --> 0:18:03.840
<v Speaker 1>this time today. We really covered a lot of ground

0:18:03.840 --> 0:18:06.960
<v Speaker 1>and I really appreciate it and gave our listeners and

0:18:07.040 --> 0:18:09.720
<v Speaker 1>viewers on YouTube a lot to think about. Dr ty Gluckman,

0:18:09.760 --> 0:18:12.080
<v Speaker 1>thank you, and be well and stay safe. He's director

0:18:12.080 --> 0:18:16.119
<v Speaker 1>of the Center for Cardiovascular Analytics at Providence St. Joseph Health.

0:18:16.160 --> 0:18:17.920
<v Speaker 1>It's a massive system. He joined us on the phone

0:18:17.920 --> 0:18:21.480
<v Speaker 1>from Portland, Oregon, talking about those who are not necessarily

0:18:21.480 --> 0:18:24.159
<v Speaker 1>getting the care they need, also giving us an update

0:18:24.200 --> 0:18:27.320
<v Speaker 1>on the COVID cases that they are specifically seeing. This

0:18:27.600 --> 0:18:31.400
<v Speaker 1>is Bloomberg Business Week with Carol Masser and Bloomberg Quick

0:18:31.400 --> 0:18:35.119
<v Speaker 1>Takes Tim Stenovic on Bloomberg Radio. All right, there's a

0:18:35.119 --> 0:18:36.919
<v Speaker 1>lot of news on the political front today. It's not

0:18:36.960 --> 0:18:39.440
<v Speaker 1>just about the resignation of New York Governor Andrew Cromo,

0:18:39.520 --> 0:18:41.840
<v Speaker 1>which we have been covering here at Bloomberg. Is also,

0:18:41.880 --> 0:18:44.000
<v Speaker 1>of course news out of the nation's capital, the Senate

0:18:44.040 --> 0:18:47.320
<v Speaker 1>passing that more than half a trillion dollar infrastructure plan.

0:18:47.359 --> 0:18:50.960
<v Speaker 1>It would represent, as I said, a massive burst of spending,

0:18:51.240 --> 0:18:54.760
<v Speaker 1>the largest that we've seen on a federal level in decades,

0:18:54.840 --> 0:18:56.560
<v Speaker 1>and it would be a pretty big, big victory for

0:18:56.720 --> 0:19:00.440
<v Speaker 1>President Biden. In his economic agenda. So let's are with

0:19:00.600 --> 0:19:05.040
<v Speaker 1>that infrastructure passage. Bloomberg News Congression Attacks reporter Laura Davison

0:19:05.359 --> 0:19:08.880
<v Speaker 1>is up on Capitol Hill in d C. Laura, good

0:19:08.880 --> 0:19:11.400
<v Speaker 1>to have you here. It it was a major step forward,

0:19:11.440 --> 0:19:14.760
<v Speaker 1>but it ain't done yet, right, correct? It is. The

0:19:15.280 --> 0:19:17.520
<v Speaker 1>bill has the Senate. The infrastructure bill has passed, but

0:19:17.520 --> 0:19:19.840
<v Speaker 1>they've already started work on the budget resolution. This is

0:19:19.840 --> 0:19:22.960
<v Speaker 1>the three point five trillion dollar bill. Uh, that will

0:19:23.280 --> 0:19:25.960
<v Speaker 1>kind of complete the rest of Joe Biden's agenda. So

0:19:26.000 --> 0:19:28.520
<v Speaker 1>they did sort of the roads and bridges proportion earlier today,

0:19:28.800 --> 0:19:31.200
<v Speaker 1>and now they're beginning, uh, the second portion, which is

0:19:31.240 --> 0:19:34.679
<v Speaker 1>looking at kind of that suck infrastructure investments into healthcare,

0:19:34.800 --> 0:19:37.960
<v Speaker 1>into education and childcare, um and as well as a

0:19:37.960 --> 0:19:42.720
<v Speaker 1>whole bunch of climate change preventing uh different mechanisms as well. Yeah,

0:19:42.760 --> 0:19:44.399
<v Speaker 1>it's massive in terms of spending. Hey, you know, I

0:19:44.440 --> 0:19:46.040
<v Speaker 1>wanted to ask you though, before we got into a

0:19:46.080 --> 0:19:48.560
<v Speaker 1>little bit more of the particulars about what's next in

0:19:48.640 --> 0:19:52.639
<v Speaker 1>terms of this process for infrastructure spending. Is what's everyone

0:19:52.680 --> 0:19:55.320
<v Speaker 1>talking about up on Capitol Hill? Is it about infrastructure

0:19:55.400 --> 0:19:58.879
<v Speaker 1>or is it about the resignation of Governor Cuomo. No

0:19:59.040 --> 0:20:01.400
<v Speaker 1>today has really been and um, a lot a lot

0:20:01.600 --> 0:20:05.240
<v Speaker 1>of of of infrastructure, you know, Cuomo, certainly this was

0:20:05.440 --> 0:20:07.280
<v Speaker 1>news in convery went by a little bit of surprise,

0:20:07.720 --> 0:20:10.560
<v Speaker 1>but though really every major Democrat in the country had

0:20:10.600 --> 0:20:13.359
<v Speaker 1>already called for his resignation, so this was more of

0:20:13.440 --> 0:20:15.959
<v Speaker 1>a um, you know, kind of seeing that happen and

0:20:16.000 --> 0:20:19.159
<v Speaker 1>now moving on. I think Democrats in particular are you know,

0:20:19.200 --> 0:20:21.320
<v Speaker 1>looking to focus on their policy wins and maybe not

0:20:21.359 --> 0:20:23.679
<v Speaker 1>so much on the scandals and the party well. And

0:20:23.720 --> 0:20:26.200
<v Speaker 1>it's interesting though, but you know this better than most

0:20:26.400 --> 0:20:29.920
<v Speaker 1>that when there's somebody who is very well known within

0:20:29.960 --> 0:20:33.800
<v Speaker 1>the political party, uh a face of the political party

0:20:33.880 --> 0:20:36.119
<v Speaker 1>in many ways, or very outspoken, and when you think

0:20:36.160 --> 0:20:40.199
<v Speaker 1>about you know, prominent Democrats, certainly Andrew Como because of

0:20:40.240 --> 0:20:43.160
<v Speaker 1>his family legacy, because of him he and his own

0:20:43.320 --> 0:20:46.080
<v Speaker 1>you know, involvement in government on a federal level and

0:20:46.160 --> 0:20:49.240
<v Speaker 1>of course in the New York state level. You know,

0:20:49.320 --> 0:20:51.520
<v Speaker 1>you do wonder about what are the implications for the

0:20:51.560 --> 0:20:54.680
<v Speaker 1>party or for a current administration. Are there any connections

0:20:55.119 --> 0:20:57.920
<v Speaker 1>that can be made that makes you know, some Democrats

0:20:57.960 --> 0:21:01.320
<v Speaker 1>a little bit nervous or not necessarily you know, it's

0:21:01.400 --> 0:21:03.920
<v Speaker 1>it's not a huge issue, but you really do see, um,

0:21:03.920 --> 0:21:05.959
<v Speaker 1>you know, kind of this issue has something that has

0:21:05.960 --> 0:21:08.760
<v Speaker 1>been kind of dog Democrats of how did they address um,

0:21:08.800 --> 0:21:10.439
<v Speaker 1>you know, kind of how women are treated. And then

0:21:10.440 --> 0:21:14.159
<v Speaker 1>the whole New Too movement. If we saw um Al Frankin,

0:21:14.520 --> 0:21:17.359
<v Speaker 1>senator from Minnesota get pushed out by members of his

0:21:17.400 --> 0:21:19.920
<v Speaker 1>own party several years ago. Um, and I think the

0:21:19.920 --> 0:21:22.040
<v Speaker 1>the party maybe felt, uh, some people felt like they

0:21:22.080 --> 0:21:24.240
<v Speaker 1>maybe moved a little too quickly and didn't fully examine

0:21:24.240 --> 0:21:27.080
<v Speaker 1>the situation there. Um. But with with Cuomo, it was

0:21:27.160 --> 0:21:29.000
<v Speaker 1>like a little bit more clear the path forward and

0:21:29.000 --> 0:21:31.640
<v Speaker 1>that uh that really that the once that report came out.

0:21:31.640 --> 0:21:33.439
<v Speaker 1>That but he really didn't have anyone backing him, and

0:21:33.440 --> 0:21:35.359
<v Speaker 1>that was a clear decision for Democrats to make. Because

0:21:35.440 --> 0:21:37.399
<v Speaker 1>New York of course a big and important state, no

0:21:37.480 --> 0:21:41.440
<v Speaker 1>doubt about it for the Democrats going forward, this new

0:21:41.440 --> 0:21:44.800
<v Speaker 1>governor coming in, uh, the deputy governor, how does that

0:21:44.880 --> 0:21:50.000
<v Speaker 1>change in terms of collaborations working together on a federal

0:21:50.000 --> 0:21:53.760
<v Speaker 1>and state level. Well, you know, you cool had really

0:21:53.760 --> 0:21:56.159
<v Speaker 1>been sort of a a leader both policy wise on

0:21:56.359 --> 0:22:00.560
<v Speaker 1>COVID response with kind of the theig new governor coming in, Um,

0:22:00.720 --> 0:22:02.520
<v Speaker 1>she's really going to be more holding down the porch

0:22:02.640 --> 0:22:04.200
<v Speaker 1>than sort of being a leader. She's just trying to

0:22:04.240 --> 0:22:06.760
<v Speaker 1>kind of keep the ship on track. Um, for New

0:22:06.840 --> 0:22:10.720
<v Speaker 1>York may find its influence over policy debates a little

0:22:10.720 --> 0:22:12.560
<v Speaker 1>bit diminished in the coming years. This is you know,

0:22:12.800 --> 0:22:15.280
<v Speaker 1>of course New York, UM is still a huge state.

0:22:15.359 --> 0:22:17.720
<v Speaker 1>Lots of representatives from New York. But you know, we

0:22:17.760 --> 0:22:19.679
<v Speaker 1>also saw in the last census that they lost, uh,

0:22:19.760 --> 0:22:22.040
<v Speaker 1>they lost more in representative So this is uh, you know,

0:22:22.080 --> 0:22:24.320
<v Speaker 1>could it kind of in hindsight proved to be sort

0:22:24.359 --> 0:22:26.960
<v Speaker 1>of a pivotal point for New York or influence um

0:22:27.040 --> 0:22:30.040
<v Speaker 1>in the Democrat in the Democratic Party and in Washington. Well,

0:22:30.040 --> 0:22:32.439
<v Speaker 1>it certainly pivotal. And that Kathy Hockle, of course, the

0:22:32.440 --> 0:22:35.840
<v Speaker 1>Lieutenant governor to become the first female governor for the

0:22:35.960 --> 0:22:39.119
<v Speaker 1>state of New York in that transition happening in the

0:22:39.119 --> 0:22:41.400
<v Speaker 1>next couple of weeks. All right, So go back to infrastructure.

0:22:41.440 --> 0:22:43.120
<v Speaker 1>I know that's been like on your mind, on all

0:22:43.119 --> 0:22:45.800
<v Speaker 1>of our minds so much. So tell us about what's

0:22:45.880 --> 0:22:49.240
<v Speaker 1>next here in this process. So the Senate passed the

0:22:49.280 --> 0:22:51.320
<v Speaker 1>bill and they now kick it over to the House

0:22:51.359 --> 0:22:53.720
<v Speaker 1>where the House will have to consider this. UM. We

0:22:53.800 --> 0:22:56.280
<v Speaker 1>don't have a set timeline for when that's going to happen. Uh.

0:22:56.359 --> 0:22:58.960
<v Speaker 1>You just kind of warring factions in the House right now,

0:22:59.160 --> 0:23:01.080
<v Speaker 1>with Moderate saying they want to vote on it aston

0:23:01.160 --> 0:23:03.960
<v Speaker 1>as possible, Progressive saying they want to see that this

0:23:04.040 --> 0:23:06.160
<v Speaker 1>other bill play out, this three point five trillion dollar

0:23:06.240 --> 0:23:08.400
<v Speaker 1>bill moved before they want to vote on the bi

0:23:08.400 --> 0:23:11.560
<v Speaker 1>partisan infrastructure bill. It's kind of a mess. Frankly. You know,

0:23:11.600 --> 0:23:13.040
<v Speaker 1>this is something that Pelosi is going to have to

0:23:13.040 --> 0:23:15.840
<v Speaker 1>sort out how to keep with all the various tents

0:23:15.880 --> 0:23:18.919
<v Speaker 1>within the party happy um and and keeping people marching

0:23:18.920 --> 0:23:21.520
<v Speaker 1>the babist sing around. You know, she only can afford

0:23:21.560 --> 0:23:24.160
<v Speaker 1>to lose three votes. She basically has to keep all

0:23:24.160 --> 0:23:27.280
<v Speaker 1>of her members together. She's done a pretty a good

0:23:27.359 --> 0:23:30.320
<v Speaker 1>job successfully of of doing that so far. But she's

0:23:30.320 --> 0:23:32.040
<v Speaker 1>got a real big test coming up here this fall.

0:23:32.119 --> 0:23:36.920
<v Speaker 1>What about Republican support, Republicans support for the infrastructure bill?

0:23:36.960 --> 0:23:39.280
<v Speaker 1>It this is uh, you know it it's seen as

0:23:39.280 --> 0:23:41.680
<v Speaker 1>though you will get some Republicans you know, in the House.

0:23:41.720 --> 0:23:43.480
<v Speaker 1>You got uh ver, sorry, in the Senate there were

0:23:43.560 --> 0:23:46.520
<v Speaker 1>nine team Republicans have joined with all fifty Democrats. Uh.

0:23:46.760 --> 0:23:49.720
<v Speaker 1>Not expecting to see quite as much of uh, you know,

0:23:49.760 --> 0:23:52.160
<v Speaker 1>kind of percentage wise in the House. Um, the House

0:23:52.240 --> 0:23:54.520
<v Speaker 1>is just a little bit more conservative. Um. And and

0:23:54.600 --> 0:23:57.560
<v Speaker 1>members who necessarily don't get points back at home from

0:23:57.600 --> 0:24:01.440
<v Speaker 1>doing bipartisan things. However, Um, there's a lot of money

0:24:01.440 --> 0:24:03.439
<v Speaker 1>that goes to a lot of states, including a lot

0:24:03.440 --> 0:24:06.320
<v Speaker 1>of Republican states, so you could see, um, some lawmakers

0:24:06.359 --> 0:24:09.040
<v Speaker 1>come over and vote for that. That's what's always interesting, Laura,

0:24:09.080 --> 0:24:13.160
<v Speaker 1>I mean you follow this because this is a massive

0:24:13.240 --> 0:24:17.000
<v Speaker 1>spending that all states will participate in this, and that

0:24:17.040 --> 0:24:19.879
<v Speaker 1>means for the most part, right, everybody has something to

0:24:19.920 --> 0:24:24.640
<v Speaker 1>take back home to their constituents. Yes, this is really um,

0:24:24.680 --> 0:24:27.240
<v Speaker 1>you know, kind of why infrastructure has been seen as

0:24:27.280 --> 0:24:29.440
<v Speaker 1>an area of by partners and cooperation for a long

0:24:29.440 --> 0:24:32.040
<v Speaker 1>long time because there's something in it for everybody. Every state,

0:24:32.080 --> 0:24:35.040
<v Speaker 1>every district has rose has bridges, um, you know, relies

0:24:35.040 --> 0:24:39.720
<v Speaker 1>on different transportation systems, any energy transmission, broadband. Everyone really

0:24:40.119 --> 0:24:43.400
<v Speaker 1>gets a lot of benefit here. So uh that that's

0:24:43.440 --> 0:24:45.399
<v Speaker 1>why it's sort of been uh you know, kind of

0:24:45.400 --> 0:24:47.600
<v Speaker 1>frustrating with some lawmakers are saying, you know, why can't

0:24:47.600 --> 0:24:50.560
<v Speaker 1>we get an agreement to spend money on improved the

0:24:51.080 --> 0:24:53.840
<v Speaker 1>facilities in our districts. Then finally today they were able

0:24:53.880 --> 0:24:57.080
<v Speaker 1>to do it well. And Nancy Pelosi, um Speaker of

0:24:57.080 --> 0:25:00.440
<v Speaker 1>the House, she has been very firm about saying that

0:25:00.600 --> 0:25:02.480
<v Speaker 1>she wants to make sure she doesn't want to vote

0:25:02.480 --> 0:25:04.480
<v Speaker 1>on the bipartisan package until the Senate has passed the

0:25:04.480 --> 0:25:07.560
<v Speaker 1>broader economic plan. Is there any wiggle room or do

0:25:07.600 --> 0:25:09.879
<v Speaker 1>you feel what you're hearing from and the reporting that

0:25:09.920 --> 0:25:12.359
<v Speaker 1>you're doing, that she's not going to change her tune

0:25:12.359 --> 0:25:15.840
<v Speaker 1>on that, and that means going for everything right rather

0:25:15.920 --> 0:25:19.000
<v Speaker 1>than kind of parsing it, you know, part one versus

0:25:19.040 --> 0:25:22.119
<v Speaker 1>the second portion. Yeah, the timing year is going to

0:25:22.200 --> 0:25:25.160
<v Speaker 1>be really really difficult to manage and to keep everybody

0:25:25.160 --> 0:25:28.439
<v Speaker 1>in line. You know, this is really the issue vexing

0:25:28.440 --> 0:25:30.840
<v Speaker 1>Pelosi this week of you know, how quickly, how far

0:25:30.880 --> 0:25:32.840
<v Speaker 1>apart can the bill bills be voted on it? You know,

0:25:33.000 --> 0:25:35.800
<v Speaker 1>one uh is coming close to being ready. Can she

0:25:35.880 --> 0:25:38.840
<v Speaker 1>go ahead and move on the infrastructure bill first? Can

0:25:38.880 --> 0:25:40.840
<v Speaker 1>she go ahead and clear that this is you know,

0:25:40.880 --> 0:25:42.639
<v Speaker 1>we're gonna have to see how this plays out. We

0:25:42.680 --> 0:25:44.960
<v Speaker 1>really don't know yet. Just she's got a lot of

0:25:44.960 --> 0:25:47.080
<v Speaker 1>people asking a lot of different things and threatening to

0:25:47.119 --> 0:25:49.720
<v Speaker 1>withhold their support, which she needs if they don't get

0:25:49.760 --> 0:25:52.000
<v Speaker 1>their way on the process. And let's remind everybody this

0:25:52.119 --> 0:25:55.879
<v Speaker 1>package is infrastructure package. UM includes about billion and new

0:25:55.920 --> 0:25:58.960
<v Speaker 1>spending for roads and bridges, seventy three billion for power

0:25:58.960 --> 0:26:01.600
<v Speaker 1>grid upgrades, six d six billion for rail and Amtrak,

0:26:02.080 --> 0:26:05.480
<v Speaker 1>sixty five billion for broadband expansion. Also provides fifty billion

0:26:05.560 --> 0:26:08.320
<v Speaker 1>for clean water and thirty nine billion for transit. So

0:26:08.960 --> 0:26:11.840
<v Speaker 1>you know, as as you and the team and they're reporting,

0:26:11.840 --> 0:26:13.879
<v Speaker 1>every state would feel the effects in some way. So

0:26:13.960 --> 0:26:16.639
<v Speaker 1>President Bond is gonna make We're expecting to make some

0:26:16.680 --> 0:26:19.399
<v Speaker 1>comments any moment now, and I know you'll be listening.

0:26:19.440 --> 0:26:22.960
<v Speaker 1>We will be as well. What's his mission at this point,

0:26:23.080 --> 0:26:26.400
<v Speaker 1>especially when it comes to the public at large. Do

0:26:26.480 --> 0:26:31.000
<v Speaker 1>they care? Can they be influential? Yeah? I mean this

0:26:31.080 --> 0:26:33.160
<v Speaker 1>is uh the President will make the case that look,

0:26:33.280 --> 0:26:35.000
<v Speaker 1>this is you know, a bill that will touch everybody

0:26:35.040 --> 0:26:37.720
<v Speaker 1>in their lives. It will make uh, you know, transportation safer,

0:26:37.760 --> 0:26:39.880
<v Speaker 1>it will make transportation cleaner. You know, it will give

0:26:39.960 --> 0:26:43.080
<v Speaker 1>people access to things like broad bands where there's still

0:26:43.119 --> 0:26:44.840
<v Speaker 1>you know, large spots of the country that don't have

0:26:45.200 --> 0:26:49.160
<v Speaker 1>the access to uh low cost high speed internet UM.

0:26:49.200 --> 0:26:51.000
<v Speaker 1>And he's also going to make the case of look

0:26:51.040 --> 0:26:53.040
<v Speaker 1>are you I when I was running, when you voted

0:26:53.080 --> 0:26:54.840
<v Speaker 1>for me, I said I was going to you know,

0:26:54.880 --> 0:26:57.639
<v Speaker 1>work with the Senate cut deal, cut by partisan to

0:26:57.720 --> 0:27:00.280
<v Speaker 1>get stuff done. Um, And he really can have you know,

0:27:00.320 --> 0:27:03.119
<v Speaker 1>a pretty good example to to hold up here and say, look, uh,

0:27:03.160 --> 0:27:05.080
<v Speaker 1>you know, they said this wasn't possible. They you know,

0:27:05.080 --> 0:27:08.600
<v Speaker 1>said that the Senate's broken. And we've proved today, at

0:27:08.680 --> 0:27:10.760
<v Speaker 1>least for a brief moment, that the Senate can work

0:27:10.800 --> 0:27:14.800
<v Speaker 1>together to come up with with these big bipartisan deals. Hey,

0:27:14.840 --> 0:27:16.560
<v Speaker 1>one other thing I just wanted to bring up, how

0:27:16.560 --> 0:27:19.639
<v Speaker 1>do we pay for this? That's the other side of

0:27:19.640 --> 0:27:23.920
<v Speaker 1>the equation. Yes, well, so that is really the question here.

0:27:23.960 --> 0:27:26.560
<v Speaker 1>You know about half of it. Uh, it adds to

0:27:26.600 --> 0:27:28.960
<v Speaker 1>the deficit. That's what the Congression Budget Office says. But

0:27:29.000 --> 0:27:31.080
<v Speaker 1>they really have a whole smattering. They really searched the

0:27:31.080 --> 0:27:33.800
<v Speaker 1>couch quesions in Washington to find the money. Did they

0:27:33.800 --> 0:27:37.080
<v Speaker 1>did something like the new cryptocurrency reporting requirements. They're using

0:27:37.200 --> 0:27:39.640
<v Speaker 1>some of the COVID relief funds that never got spent.

0:27:39.960 --> 0:27:43.159
<v Speaker 1>They're repurposing those to cover these costs um as well

0:27:43.160 --> 0:27:46.800
<v Speaker 1>as UM doing a fee on some UM some polluting

0:27:46.840 --> 0:27:49.840
<v Speaker 1>company is kind of little odds and ends here, uh,

0:27:49.880 --> 0:27:52.560
<v Speaker 1>to come up with the with the a couple hundred

0:27:52.560 --> 0:27:54.359
<v Speaker 1>billion dollars to pay for it. And let's not forget

0:27:54.400 --> 0:27:56.600
<v Speaker 1>that there's a major push by a group of U. S.

0:27:56.640 --> 0:27:59.800
<v Speaker 1>Lawmakers to expand the federal deduction for state and local

0:27:59.840 --> 0:28:03.280
<v Speaker 1>town axes. Right, And that's something just quickly that's also

0:28:03.840 --> 0:28:07.200
<v Speaker 1>being worked on. Yes, that's in the reconciliation build. That's

0:28:07.240 --> 0:28:09.320
<v Speaker 1>something that several Democrats and the House that said they

0:28:09.359 --> 0:28:11.920
<v Speaker 1>won't vote on the state and local tax deduction. It's

0:28:11.920 --> 0:28:15.120
<v Speaker 1>a huge deal, particularly for New York, particularly for Democrats. Um,

0:28:15.160 --> 0:28:17.320
<v Speaker 1>and I think it's there's a very strong chance that

0:28:17.359 --> 0:28:21.440
<v Speaker 1>we'll see some form of that tax deduction being susbanded

0:28:21.520 --> 0:28:23.800
<v Speaker 1>at any build that passes later this year. Amen, sister,

0:28:23.920 --> 0:28:26.720
<v Speaker 1>I live here in the New York area. We certainly

0:28:26.760 --> 0:28:28.760
<v Speaker 1>have all felt it. Hey, Laura, thank you so much.

0:28:29.000 --> 0:28:31.399
<v Speaker 1>I really appreciate that and gave us a great setup

0:28:31.400 --> 0:28:35.600
<v Speaker 1>for when the President makes some comments on that infrastructure plan.

0:28:35.920 --> 0:28:37.800
<v Speaker 1>All right, That of course was Laura David's and she

0:28:37.920 --> 0:28:40.560
<v Speaker 1>is our Bloomberg News congressional tax reporter joining us up

0:28:40.680 --> 0:28:44.719
<v Speaker 1>on Capitol Hill. You're listening to Bloomberg Business Week with

0:28:44.840 --> 0:28:49.640
<v Speaker 1>Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio.

0:28:50.120 --> 0:28:53.280
<v Speaker 1>So we talked about this Business Week story yesterday on air.

0:28:53.280 --> 0:28:56.280
<v Speaker 1>It's about how restaurants and restaurant owners are continuing to

0:28:56.280 --> 0:28:59.120
<v Speaker 1>pivot in our pandemic and post pandemic world, and that

0:28:59.200 --> 0:29:03.560
<v Speaker 1>means often be coming creative, innovative, changing menus, and sometimes

0:29:03.600 --> 0:29:06.800
<v Speaker 1>playing bouncer. This story on the Bloomberg and at Bloomberg

0:29:06.800 --> 0:29:08.440
<v Speaker 1>business Week dot Com. Here with more on what's going on.

0:29:08.480 --> 0:29:11.520
<v Speaker 1>Bloomberg Business Week editor Joel Webber on the access line

0:29:11.640 --> 0:29:15.760
<v Speaker 1>in Massachuset Sits along with Bloomberg News investigative reporter Polymosens,

0:29:15.760 --> 0:29:18.720
<v Speaker 1>who wrote this story along with Our Pursuits Food editor

0:29:18.920 --> 0:29:22.440
<v Speaker 1>Kate Creator Polly on the phone in New York City. Joel, Man,

0:29:22.600 --> 0:29:25.240
<v Speaker 1>those restaurants, I know, they're happy that the doors are open,

0:29:25.320 --> 0:29:28.520
<v Speaker 1>but man, it's not easy open for some um and

0:29:28.560 --> 0:29:31.560
<v Speaker 1>that's where the drama comes in. And and just like

0:29:31.680 --> 0:29:33.720
<v Speaker 1>sort of at the beginning of the pandemic, when the

0:29:34.680 --> 0:29:39.080
<v Speaker 1>restaurants were really like front lines of sorts. Um uh

0:29:39.240 --> 0:29:42.280
<v Speaker 1>there there again. And that's um sort of what Polly

0:29:42.360 --> 0:29:46.000
<v Speaker 1>and Kate Creator pointed out and got to talk to

0:29:46.000 --> 0:29:47.840
<v Speaker 1>a lot of people who are dealing with this. So, Polly,

0:29:47.880 --> 0:29:51.440
<v Speaker 1>what did you hear? Well, one of the biggest things

0:29:51.480 --> 0:29:55.800
<v Speaker 1>that we heard was just surprise. Restaurants feel not entirely

0:29:55.880 --> 0:29:58.800
<v Speaker 1>prepared to deal with this, but they're also willing to

0:29:58.920 --> 0:30:01.800
<v Speaker 1>roll with the punch. Shows they were certainly not resistant

0:30:01.840 --> 0:30:03.920
<v Speaker 1>to the idea. They just are going to need a

0:30:03.920 --> 0:30:06.440
<v Speaker 1>little bit of time to acclimate because not only are

0:30:06.440 --> 0:30:09.320
<v Speaker 1>they going to have to check all of their diners,

0:30:09.320 --> 0:30:11.360
<v Speaker 1>they're also going to have to check all of their

0:30:11.480 --> 0:30:15.040
<v Speaker 1>staff because the policy applies to their employees as well

0:30:15.040 --> 0:30:19.320
<v Speaker 1>as to the diners. Well, it's this is what's crazy,

0:30:19.360 --> 0:30:22.920
<v Speaker 1>I mean, and we're talking about this increasingly right because

0:30:23.120 --> 0:30:25.160
<v Speaker 1>in order for people to maybe go to restaurants, they

0:30:25.200 --> 0:30:27.680
<v Speaker 1>when it feel safe, especially if they're inside, and so

0:30:27.720 --> 0:30:31.520
<v Speaker 1>as a result, these owners are going are really having

0:30:31.560 --> 0:30:33.840
<v Speaker 1>to police who's in there. I mean, it's it's it's

0:30:33.880 --> 0:30:36.800
<v Speaker 1>like checking your ideas when you were seventeen or eighteen. Uh,

0:30:36.800 --> 0:30:40.560
<v Speaker 1>this is what they're doing. Polly. Yeah, absolutely, This is

0:30:40.560 --> 0:30:42.960
<v Speaker 1>like the ultimate I D check where you'll have to

0:30:43.040 --> 0:30:44.840
<v Speaker 1>show your idea and then you'll have to show your

0:30:44.920 --> 0:30:48.120
<v Speaker 1>vaccine card. And just like they do with the ideas,

0:30:48.120 --> 0:30:49.640
<v Speaker 1>they're going to have to be on the lookout for

0:30:49.680 --> 0:30:53.560
<v Speaker 1>fakes when it comes to the vaccine cards. So so

0:30:53.800 --> 0:30:56.040
<v Speaker 1>talk to us about the excel fior paths and sort

0:30:56.040 --> 0:30:58.280
<v Speaker 1>of like what the people you talk to, how do

0:30:58.280 --> 0:31:02.640
<v Speaker 1>they how do they feel about it in practice? So

0:31:02.840 --> 0:31:04.800
<v Speaker 1>the good thing about the excels you pass is that

0:31:04.880 --> 0:31:08.360
<v Speaker 1>it is a pretty thorough app. However, in practice, it

0:31:08.520 --> 0:31:11.320
<v Speaker 1>is possible to pass the phone in between two diners,

0:31:11.400 --> 0:31:13.320
<v Speaker 1>you know, two folks that might be going out to

0:31:13.320 --> 0:31:16.920
<v Speaker 1>dinner together. They in one case, the actually heard that

0:31:17.320 --> 0:31:20.440
<v Speaker 1>the hostess and the owner of the restaurant she caught

0:31:20.440 --> 0:31:23.160
<v Speaker 1>them passing the app between them. So while the app

0:31:23.240 --> 0:31:25.800
<v Speaker 1>is certainly sorrow, it certainly seems to work well. You

0:31:25.880 --> 0:31:28.320
<v Speaker 1>do run the risk of people just passing the phone

0:31:28.360 --> 0:31:31.120
<v Speaker 1>between the two of them in order to circumvent that

0:31:31.360 --> 0:31:35.880
<v Speaker 1>vaccination mandate. Yeah, I mean it's pretty wild that that's

0:31:35.880 --> 0:31:38.400
<v Speaker 1>going on. And I mean it's even trickier as you

0:31:38.480 --> 0:31:42.040
<v Speaker 1>and Kate report in the story, Um, Polly is that

0:31:42.080 --> 0:31:46.280
<v Speaker 1>you talk about for someone it might be an Asian restaurant.

0:31:46.320 --> 0:31:48.720
<v Speaker 1>I mean, it's not just you know, policing when it

0:31:48.720 --> 0:31:52.160
<v Speaker 1>comes to vaccine, But there's also other factors at play

0:31:52.240 --> 0:31:56.680
<v Speaker 1>that makes it even more difficult for restaurant owners. Absolutely,

0:31:56.720 --> 0:31:58.800
<v Speaker 1>it is just one more hurdle that they were going

0:31:58.840 --> 0:32:01.040
<v Speaker 1>to have to deal with, and they've had eighteen months

0:32:01.080 --> 0:32:04.200
<v Speaker 1>of hurdles. And some restaurants they're going to be able

0:32:04.240 --> 0:32:08.360
<v Speaker 1>to afford to offload this responsibility to security guards, but

0:32:08.440 --> 0:32:13.200
<v Speaker 1>that's not something that's feasible for all restaurants. And so

0:32:13.240 --> 0:32:16.959
<v Speaker 1>what is um the general sort of like mood that

0:32:17.040 --> 0:32:19.280
<v Speaker 1>you get from talking to everybody that you've got to

0:32:19.320 --> 0:32:23.160
<v Speaker 1>talk with and look like it feels like forever, like

0:32:23.200 --> 0:32:26.480
<v Speaker 1>these eighteen months and it's been this roller coaster ride

0:32:26.480 --> 0:32:29.960
<v Speaker 1>where suddenly everything had to be uh to go and

0:32:30.000 --> 0:32:34.120
<v Speaker 1>then you know in room dinning started back um and

0:32:34.280 --> 0:32:36.560
<v Speaker 1>but then they took away the to go cocktails. Like

0:32:36.640 --> 0:32:39.479
<v Speaker 1>what's the just what's the mood when you talk to

0:32:41.000 --> 0:32:44.760
<v Speaker 1>the folks who are really in charge of these businesses? Yeah,

0:32:44.800 --> 0:32:47.320
<v Speaker 1>the mood is definitely very There's some folks to say,

0:32:47.440 --> 0:32:49.160
<v Speaker 1>you know, we'll deal with it and we're going to

0:32:49.200 --> 0:32:51.920
<v Speaker 1>be okay, and then there's some folks who just anticipate

0:32:52.320 --> 0:32:55.640
<v Speaker 1>more problems down the road. And I think overall the

0:32:55.680 --> 0:32:59.800
<v Speaker 1>mood is just people getting used to constant change. There

0:32:59.800 --> 0:33:02.400
<v Speaker 1>are no more surprises, you know, everything is now a

0:33:02.480 --> 0:33:04.920
<v Speaker 1>surprise in the dining industry. So a lot of the

0:33:04.960 --> 0:33:07.680
<v Speaker 1>restaurateurs who we talked to, they have gotten to the

0:33:07.840 --> 0:33:10.440
<v Speaker 1>used rolling with the punchers, even if they're not thrilled

0:33:10.480 --> 0:33:12.480
<v Speaker 1>with all the punches. I love. There's a quote from

0:33:12.560 --> 0:33:15.520
<v Speaker 1>is its Goot Gerber that's in a story, and it says,

0:33:15.560 --> 0:33:19.800
<v Speaker 1>we've dealt with intoxicated people, irrational people. Uh, and he

0:33:19.840 --> 0:33:23.320
<v Speaker 1>says our people are skilled at de escalating problems. I mean, yes,

0:33:23.440 --> 0:33:25.840
<v Speaker 1>that's so true. But it does feel like this takes it,

0:33:26.200 --> 0:33:30.600
<v Speaker 1>you know, to a whole other level. Absolutely, I think

0:33:30.640 --> 0:33:33.320
<v Speaker 1>that this definitely does ticket to a whole different level.

0:33:33.440 --> 0:33:36.440
<v Speaker 1>And you know, we have seen, unfortunately in the past,

0:33:36.560 --> 0:33:39.920
<v Speaker 1>people do get very violent and very upset with folks

0:33:39.960 --> 0:33:42.720
<v Speaker 1>who are working the door. That's something that service workers

0:33:42.840 --> 0:33:45.960
<v Speaker 1>at grocery stores and that retailers dealt with a lot

0:33:46.000 --> 0:33:48.440
<v Speaker 1>in the early days of the pandemic. You know, in

0:33:48.520 --> 0:33:51.920
<v Speaker 1>two instances of security guards were unfortunately even killed over

0:33:52.040 --> 0:33:57.120
<v Speaker 1>moss mandates that they were attempting to enforce. Well, you know,

0:33:57.160 --> 0:33:59.280
<v Speaker 1>that was another group of people that you you you know,

0:33:59.360 --> 0:34:02.080
<v Speaker 1>we we Genette already a little bit, but I do

0:34:02.160 --> 0:34:04.840
<v Speaker 1>want to bring it back to the security guards, who

0:34:04.840 --> 0:34:08.640
<v Speaker 1>are you know, ultimately being contracted to sort of fight

0:34:08.719 --> 0:34:13.040
<v Speaker 1>these fights as as subcontractors. Really and and do we

0:34:13.160 --> 0:34:16.279
<v Speaker 1>see that demand for that that job description continuing to

0:34:16.320 --> 0:34:20.080
<v Speaker 1>go up in the mouth head? Oh? Absolutely. We talked

0:34:20.080 --> 0:34:22.960
<v Speaker 1>to two different security guard company owners and both of

0:34:23.000 --> 0:34:25.080
<v Speaker 1>them did anticipate that there would be a rise in

0:34:25.160 --> 0:34:28.600
<v Speaker 1>business as a result of this new mandate. Uh And

0:34:28.640 --> 0:34:31.640
<v Speaker 1>you know, one of the owners was was optimistic, he

0:34:31.760 --> 0:34:34.280
<v Speaker 1>was hopeful that people would comply and that New Yorkers

0:34:34.320 --> 0:34:38.319
<v Speaker 1>would understand. And then the other one was a little apprehensive.

0:34:38.440 --> 0:34:41.040
<v Speaker 1>He he was nervous that his guard should be dealing

0:34:41.080 --> 0:34:44.920
<v Speaker 1>with erratic people, especially tourists who are not from New

0:34:45.000 --> 0:34:47.600
<v Speaker 1>York and perhaps once familiar with the policy to begin with,

0:34:47.600 --> 0:34:50.840
<v Speaker 1>who might get very upset. You know what's interesting, too,

0:34:51.040 --> 0:34:52.960
<v Speaker 1>is you talk about and I know we've touched upon

0:34:53.000 --> 0:34:56.240
<v Speaker 1>this a little bit, but I do think about how

0:34:56.440 --> 0:34:59.520
<v Speaker 1>restaurants are doing additional training. Right. We did it after

0:34:59.520 --> 0:35:02.399
<v Speaker 1>the Me Too movement and as you know, certainly after

0:35:02.440 --> 0:35:07.279
<v Speaker 1>George Floyd. Companies adapting in general to what's happening in

0:35:08.080 --> 0:35:10.520
<v Speaker 1>our world, and that's the same thing for restaurant owners

0:35:10.600 --> 0:35:13.239
<v Speaker 1>right that, you know, Polly, we have to see them

0:35:13.400 --> 0:35:16.040
<v Speaker 1>maybe instituting new training for their workers so that they

0:35:16.120 --> 0:35:18.920
<v Speaker 1>know how to handle these situations. They've got the tools

0:35:19.320 --> 0:35:23.480
<v Speaker 1>to figure it out. Yeah, absolutely, And I'm sure they

0:35:23.480 --> 0:35:26.080
<v Speaker 1>will also be looking to law enforcement in the most

0:35:26.080 --> 0:35:28.839
<v Speaker 1>extreme situations, and law enforcement has had to do their

0:35:28.840 --> 0:35:31.600
<v Speaker 1>own set of training as as they navigate this new

0:35:31.640 --> 0:35:37.000
<v Speaker 1>and unusual world that we're living in. So so, Polly, um,

0:35:37.040 --> 0:35:39.560
<v Speaker 1>you know, just bring it back to that Excelsior app

0:35:39.600 --> 0:35:43.279
<v Speaker 1>and sort of like the technological solutions and then you know,

0:35:43.320 --> 0:35:47.480
<v Speaker 1>the easy work around people will nevillly come up with

0:35:47.680 --> 0:35:52.080
<v Speaker 1>um and and and with delta being what um um

0:35:52.120 --> 0:35:55.480
<v Speaker 1>you know, just continues to be a bigger concern with people.

0:35:56.320 --> 0:36:00.400
<v Speaker 1>Are people thinking that? But in the restaurant groups in particular,

0:36:00.440 --> 0:36:03.240
<v Speaker 1>are people craving to be in restaurants right now still

0:36:03.400 --> 0:36:06.360
<v Speaker 1>or are they Is it more of like uh taking

0:36:06.360 --> 0:36:08.799
<v Speaker 1>a backseat, um to where we were kind of at

0:36:08.800 --> 0:36:13.040
<v Speaker 1>the beginning of the pandemic. No, I think that people

0:36:13.040 --> 0:36:15.359
<v Speaker 1>are still craving it. I definitely think that there will

0:36:15.360 --> 0:36:17.320
<v Speaker 1>still be a market for it because it's important to

0:36:17.400 --> 0:36:19.719
<v Speaker 1>understand that in New York City, we actually have a

0:36:19.719 --> 0:36:23.279
<v Speaker 1>phenomenally high vaccination rate. New York is doing really well

0:36:23.320 --> 0:36:26.640
<v Speaker 1>in vaccination, and I think that the Mayor's office and

0:36:26.719 --> 0:36:29.480
<v Speaker 1>restaurateurs are hopeful that this will take it to the

0:36:29.520 --> 0:36:32.960
<v Speaker 1>next level of vaccination rate. So I definitely think that

0:36:33.000 --> 0:36:34.960
<v Speaker 1>there is still a big market and a big desire

0:36:35.040 --> 0:36:37.759
<v Speaker 1>to be out and about, and you know, this policy

0:36:38.520 --> 0:36:40.600
<v Speaker 1>may encourage some people who have been on the fence

0:36:40.640 --> 0:36:44.319
<v Speaker 1>about vaccination to ultimately get that well. And you know,

0:36:44.360 --> 0:36:46.400
<v Speaker 1>I also do wonder We've talked about this a lot,

0:36:46.600 --> 0:36:49.760
<v Speaker 1>probably about you know, private sector public sector working together,

0:36:49.880 --> 0:36:52.880
<v Speaker 1>and it does feel like restaurants have to be a

0:36:52.880 --> 0:36:55.279
<v Speaker 1>little bit on pins and needles as new mandates come

0:36:55.280 --> 0:36:58.680
<v Speaker 1>down from officials about how to do things, and then

0:36:58.680 --> 0:37:01.919
<v Speaker 1>they've got their left kind of figuring it all out. Uh,

0:37:01.960 --> 0:37:04.000
<v Speaker 1>And I do wonder if there'll be more collaboration to

0:37:04.080 --> 0:37:10.520
<v Speaker 1>kind of help restaurants through this, especially when it's stricter policy. Absolutely,

0:37:10.600 --> 0:37:12.439
<v Speaker 1>I think that's the biggest thing that we heard, both

0:37:12.440 --> 0:37:15.320
<v Speaker 1>from the security guard company and from the restaurateurs is

0:37:15.440 --> 0:37:17.680
<v Speaker 1>just we need more time. We need to figure out

0:37:17.680 --> 0:37:20.400
<v Speaker 1>how this is going to work. You know, they do

0:37:20.560 --> 0:37:24.359
<v Speaker 1>need to to get acclimated to this new policy. And

0:37:24.680 --> 0:37:26.600
<v Speaker 1>I think that there's the shoes that they haven't even

0:37:26.600 --> 0:37:28.840
<v Speaker 1>thought it yet. They will deal with when the time

0:37:28.880 --> 0:37:31.360
<v Speaker 1>comes when people are ultimately showing up at their doors

0:37:31.360 --> 0:37:35.040
<v Speaker 1>that have to prove that they're vascinating. PAULI, how many

0:37:35.080 --> 0:37:37.560
<v Speaker 1>restaurants did you go to and the course of reporting

0:37:37.560 --> 0:37:40.160
<v Speaker 1>this story and where do you most want to go

0:37:40.960 --> 0:37:45.160
<v Speaker 1>that you didn't get to go to? Kate and yah,

0:37:45.360 --> 0:37:48.160
<v Speaker 1>we we only got to visit a few restaurants in

0:37:48.200 --> 0:37:49.959
<v Speaker 1>the course of reporting the story that we had talked

0:37:50.000 --> 0:37:53.280
<v Speaker 1>to a whole bunch personally, I am really looking forward

0:37:53.320 --> 0:37:55.960
<v Speaker 1>to being able to go out to ed Lobster. That

0:37:56.080 --> 0:37:58.400
<v Speaker 1>is one of my favorite places in the city. It

0:37:58.560 --> 0:38:01.480
<v Speaker 1>is a great place and I will certainly be dining

0:38:01.520 --> 0:38:04.480
<v Speaker 1>there when there's all vaccinated inside. Well, I have to say,

0:38:04.520 --> 0:38:06.359
<v Speaker 1>it does feel good to walk around New York. I've

0:38:06.360 --> 0:38:09.439
<v Speaker 1>actually eaten out in a couple of restaurants um since

0:38:09.480 --> 0:38:11.800
<v Speaker 1>they've opened up, and it felt so good to see

0:38:11.920 --> 0:38:14.520
<v Speaker 1>the activity back. And I bet you know, Polly, if

0:38:14.520 --> 0:38:17.120
<v Speaker 1>you tried to do this six months ago or something,

0:38:17.160 --> 0:38:21.040
<v Speaker 1>it's just such a different scene. That's for sure. It

0:38:21.120 --> 0:38:23.680
<v Speaker 1>definitely feels like there's life back in restaurants. And I

0:38:23.719 --> 0:38:25.680
<v Speaker 1>think that for a lot of people who live in

0:38:25.719 --> 0:38:28.399
<v Speaker 1>New York City and who love dining, this mandate will

0:38:28.440 --> 0:38:30.400
<v Speaker 1>not to turn them. They will they will find a

0:38:30.400 --> 0:38:32.080
<v Speaker 1>way to go out to eat, and you know, if

0:38:32.080 --> 0:38:34.960
<v Speaker 1>they're really hesitant about the vaccine, they do always have

0:38:35.000 --> 0:38:37.880
<v Speaker 1>the option of eating outdoors. That does remain an option

0:38:37.960 --> 0:38:41.640
<v Speaker 1>even with this new policy. Not been easy, Joe, I've

0:38:41.640 --> 0:38:43.960
<v Speaker 1>been the guy outside. I got a six year old,

0:38:44.000 --> 0:38:46.680
<v Speaker 1>So anytime I have to go outside, I go outside,

0:38:46.800 --> 0:38:48.680
<v Speaker 1>or anything we're going to do a restaurant, go outside,

0:38:48.680 --> 0:38:50.919
<v Speaker 1>because I've got a kid. That is you know, mass

0:38:50.960 --> 0:38:53.040
<v Speaker 1>Dubby's doing a great job, but I haven't really wanted

0:38:53.080 --> 0:38:55.880
<v Speaker 1>to drag him inside. Um and now you know, I

0:38:55.880 --> 0:38:58.440
<v Speaker 1>don't think he could since you know, he's a vaccine card.

0:38:58.440 --> 0:39:01.240
<v Speaker 1>To show that's right, that's right, all right, listen, good

0:39:01.440 --> 0:39:04.080
<v Speaker 1>uh story and certainly great to get an update on

0:39:04.440 --> 0:39:06.719
<v Speaker 1>what's been really one of the most troubled sectors and

0:39:06.800 --> 0:39:09.880
<v Speaker 1>hard hit sectors because of the pandemic. Polly Mysa and

0:39:10.000 --> 0:39:12.600
<v Speaker 1>she is an investigative reporter here at Bloomberg News on

0:39:12.640 --> 0:39:14.120
<v Speaker 1>the phone in New York and of course our thanks

0:39:14.120 --> 0:39:16.919
<v Speaker 1>to Joe Webber, editor Bloomberg Business Week, joining us also

0:39:17.040 --> 0:39:24.840
<v Speaker 1>on the remote access. I'm Broom Journal. Yeah, but you

0:39:24.920 --> 0:39:32.600
<v Speaker 1>let me drive home, honey, please, I'll drivel. I don't

0:39:32.600 --> 0:39:48.400
<v Speaker 1>want to drive, just drive. Good question trying. This is

0:39:48.440 --> 0:39:51.480
<v Speaker 1>the drive to the globe. Give me thanks. We'll dry

0:39:51.680 --> 0:39:54.920
<v Speaker 1>up to dawn on Bloomberg Radio. All right, just about

0:39:54.920 --> 0:39:57.480
<v Speaker 1>ten and a half minutes left in today's trading session,

0:39:57.480 --> 0:39:59.879
<v Speaker 1>getting ready to wrap up that Tuesday trade. And it's

0:40:00.160 --> 0:40:02.320
<v Speaker 1>we mentioned we did see a record on the SMP

0:40:02.440 --> 0:40:05.759
<v Speaker 1>five hundred. Will see will ultimately close there, You've got

0:40:05.760 --> 0:40:08.480
<v Speaker 1>the Dow really the outperformer on a percentage basis, up

0:40:08.480 --> 0:40:12.160
<v Speaker 1>about point four percent. Nasaca going in the other direction.

0:40:12.320 --> 0:40:13.960
<v Speaker 1>All right, let's get to our next guest. He is

0:40:14.040 --> 0:40:17.280
<v Speaker 1>Ryan Jacob. He's chairman, chief investment officer, portfolio manager Jacob

0:40:17.280 --> 0:40:20.759
<v Speaker 1>Assett Management, the Jacob Internet Fun as we've mentioned before,

0:40:20.800 --> 0:40:22.759
<v Speaker 1>continuing to beat just about all of its peers of

0:40:22.800 --> 0:40:25.120
<v Speaker 1>the past five years. It's in the ninety percent. I'll

0:40:25.400 --> 0:40:29.320
<v Speaker 1>according to data here at Bloomberg returning scent on average annually,

0:40:29.520 --> 0:40:32.440
<v Speaker 1>the Jacob Discovery Fund and the Jacob SmallCap Growth also

0:40:32.480 --> 0:40:35.080
<v Speaker 1>taught performers over the past five years. And Ryan with

0:40:35.200 --> 0:40:37.160
<v Speaker 1>us on the phone from l A Ryan, good to

0:40:37.200 --> 0:40:39.279
<v Speaker 1>have you here. How are you It seems like it's

0:40:40.040 --> 0:40:42.400
<v Speaker 1>it's good. This year is turning out to be a

0:40:42.400 --> 0:40:46.200
<v Speaker 1>pretty decent one for you guys. It has been um,

0:40:46.239 --> 0:40:48.279
<v Speaker 1>you know, we had a very strong first quarter. The

0:40:48.280 --> 0:40:51.760
<v Speaker 1>second quarter is a bit more challenging. But but overall, um,

0:40:51.800 --> 0:40:53.920
<v Speaker 1>you know a lot of our companies have been performing

0:40:54.000 --> 0:40:57.440
<v Speaker 1>and uh, it's reflected in the stock crisis. Well, how

0:40:57.480 --> 0:41:00.640
<v Speaker 1>are you adjusting any of your portfolio holdings. I'm looking

0:41:00.680 --> 0:41:03.160
<v Speaker 1>at some of your top holdings in your Internet fund,

0:41:03.400 --> 0:41:07.200
<v Speaker 1>Voyage or Digital Digital Turbine, Twitter, Twilion, and these are

0:41:07.239 --> 0:41:09.279
<v Speaker 1>I think as of the end of May, So maybe

0:41:09.320 --> 0:41:12.560
<v Speaker 1>there's some some shift square zero, any changes that you've

0:41:12.600 --> 0:41:16.879
<v Speaker 1>been actively making. Uh, We've been making some changes. I

0:41:17.080 --> 0:41:20.680
<v Speaker 1>We still believe the biggest challenge this year is especially

0:41:20.680 --> 0:41:23.680
<v Speaker 1>in the technology spaces, which companies can kind of build

0:41:23.719 --> 0:41:26.959
<v Speaker 1>off of what was kind of a COVID bump last

0:41:27.040 --> 0:41:30.920
<v Speaker 1>year and can continue to grow um this year and

0:41:30.960 --> 0:41:33.320
<v Speaker 1>it maybe accelerate their growth off of what was a

0:41:33.400 --> 0:41:36.320
<v Speaker 1>high base. There are a lot of companies that really

0:41:36.360 --> 0:41:39.560
<v Speaker 1>had a sugar high from from you know, work at

0:41:39.560 --> 0:41:43.279
<v Speaker 1>home lockdowns, etcetera, and have tailed off of it. I

0:41:43.320 --> 0:41:45.680
<v Speaker 1>think that distinction is going to be the biggest challenge

0:41:45.719 --> 0:41:48.200
<v Speaker 1>this year. Well, you know, and that's interesting, right because

0:41:48.239 --> 0:41:50.400
<v Speaker 1>I think we obviously did see a lot of companies

0:41:50.400 --> 0:41:53.360
<v Speaker 1>that benefited. As uncomfortable as that may have been to

0:41:53.440 --> 0:41:56.280
<v Speaker 1>talk about it, nonetheless, there were definitely some pandemic plays.

0:41:56.360 --> 0:41:59.839
<v Speaker 1>Which are the ones that you think are longer lasting. Well,

0:42:00.120 --> 0:42:04.000
<v Speaker 1>US Digital Turbine, which reported last night UM is definitely

0:42:04.280 --> 0:42:06.319
<v Speaker 1>one of those. The stock is actually off a little bit.

0:42:06.360 --> 0:42:10.280
<v Speaker 1>Today's surprising to US. UM you know, been accelerating their growth.

0:42:10.360 --> 0:42:14.520
<v Speaker 1>It's a triple digit grower even off of last year's results. Uh.

0:42:15.280 --> 0:42:19.200
<v Speaker 1>Three recent acquisitions should be very additive to revenue and

0:42:19.840 --> 0:42:23.640
<v Speaker 1>margins going forward. In cash flow. Uh and uh, you

0:42:23.640 --> 0:42:28.200
<v Speaker 1>know they've benefited. They provide software for mostly Android devices

0:42:28.280 --> 0:42:31.279
<v Speaker 1>for app installs. They saw a big bump last year,

0:42:31.320 --> 0:42:34.960
<v Speaker 1>but because of their international distribution, that bump last year

0:42:35.080 --> 0:42:37.960
<v Speaker 1>is accelerating into this year. And uh, you know, the

0:42:38.000 --> 0:42:41.040
<v Speaker 1>revenue growth has been astounding and there's still a lot

0:42:41.080 --> 0:42:43.279
<v Speaker 1>of room for margin improvement. All right, So have you

0:42:43.320 --> 0:42:47.560
<v Speaker 1>allocated new money maintained the position. Yeah, it's it's still

0:42:47.600 --> 0:42:50.799
<v Speaker 1>you know, the positions you mentioned are still our top group.

0:42:51.280 --> 0:42:55.160
<v Speaker 1>You know, Zillo the stock isn't terrible in the last quarter,

0:42:55.320 --> 0:42:58.840
<v Speaker 1>but the results, uh last week, we're we're tremendous and

0:42:59.360 --> 0:43:01.440
<v Speaker 1>you know, the ie ying the Zillo homes. They've been

0:43:01.480 --> 0:43:05.880
<v Speaker 1>advertising it more, expanding it, and it's resonating among consumers.

0:43:06.160 --> 0:43:09.399
<v Speaker 1>You know, it's an astounding statistic that you know, two

0:43:09.480 --> 0:43:12.800
<v Speaker 1>thirds of all home purchases at some point go through Zillo,

0:43:13.360 --> 0:43:16.920
<v Speaker 1>and so it's an extremely valuable platform. And uh, you know,

0:43:17.080 --> 0:43:19.239
<v Speaker 1>they continue to execute very well. So why is the

0:43:19.239 --> 0:43:22.000
<v Speaker 1>stock down? It's down about so far this year, well

0:43:22.040 --> 0:43:25.120
<v Speaker 1>off the high that we saw back in February where

0:43:25.120 --> 0:43:27.680
<v Speaker 1>it was what I think around two hundred or so,

0:43:28.120 --> 0:43:32.000
<v Speaker 1>now changing now trading it just below a hundred. Why

0:43:32.040 --> 0:43:34.799
<v Speaker 1>what's the disconnect? Especially when you talk I think, yeah,

0:43:34.800 --> 0:43:38.040
<v Speaker 1>I think a few reasons. Obviously, Um, you know, last

0:43:38.080 --> 0:43:41.200
<v Speaker 1>year a huge boom in real estate and that's translate

0:43:41.239 --> 0:43:43.719
<v Speaker 1>you know, that's also continued into this year, and there's

0:43:43.760 --> 0:43:46.480
<v Speaker 1>concerns that that that that can't continue at that pace.

0:43:46.920 --> 0:43:49.719
<v Speaker 1>We've also seen interest rates creep back up, and I

0:43:49.719 --> 0:43:52.839
<v Speaker 1>think there's a lendering concern there that if rates uh

0:43:53.120 --> 0:43:56.680
<v Speaker 1>go continue to rise, that could affect affordability. But I

0:43:56.680 --> 0:43:59.279
<v Speaker 1>think there's a disconnect. I mean, the results have been

0:43:59.320 --> 0:44:03.840
<v Speaker 1>outstanding and again, um, even though the real estate market

0:44:03.880 --> 0:44:06.840
<v Speaker 1>made cool some uh you know, in terms of the

0:44:07.160 --> 0:44:10.279
<v Speaker 1>stock performance, it's been a bit puzzling. It would be

0:44:10.320 --> 0:44:14.920
<v Speaker 1>this week given their continued dominance of of the market.

0:44:15.480 --> 0:44:18.400
<v Speaker 1>There's another name that you like, certainly, not one that

0:44:18.440 --> 0:44:20.800
<v Speaker 1>we talked about a lot, but it's tickers O p

0:44:21.040 --> 0:44:26.520
<v Speaker 1>r X Optimize er r Xcess is away for individuals

0:44:26.520 --> 0:44:29.319
<v Speaker 1>consumers to save money right on branded prescription. Tell us

0:44:29.320 --> 0:44:31.879
<v Speaker 1>little bit about this one, Well, think of it. Think

0:44:31.880 --> 0:44:36.040
<v Speaker 1>of it almost like the good r X for doctors

0:44:36.080 --> 0:44:40.080
<v Speaker 1>and insurgents, where um, what's happening is that they offer

0:44:40.480 --> 0:44:44.800
<v Speaker 1>e coupon NG and other sorts of uh rebates for

0:44:45.080 --> 0:44:50.000
<v Speaker 1>patients for different prescriptions, you know, as they're prescribed, and

0:44:50.360 --> 0:44:53.200
<v Speaker 1>these are advertisements that are delivered through the electronic health

0:44:53.280 --> 0:44:56.120
<v Speaker 1>record systems you know, directly the doctor when they're the

0:44:56.120 --> 0:45:00.760
<v Speaker 1>point of point of prescribing. And they also it's it's

0:45:01.080 --> 0:45:03.640
<v Speaker 1>a way for drug companies to get their brands in

0:45:03.680 --> 0:45:06.600
<v Speaker 1>front of a very important audience. And this was a

0:45:06.640 --> 0:45:10.000
<v Speaker 1>business that was taking off prior to COVID. Once all

0:45:10.040 --> 0:45:12.799
<v Speaker 1>of the pharmaceutical reps could no longer go out in

0:45:12.800 --> 0:45:17.040
<v Speaker 1>the field, no more industry conferences, a huge push towards

0:45:17.120 --> 0:45:22.560
<v Speaker 1>digital advertising for these drug brands, and so they saw

0:45:22.600 --> 0:45:26.160
<v Speaker 1>a huge adoption last year. And I think that as

0:45:26.320 --> 0:45:30.520
<v Speaker 1>the drug companies have seen the effectiveness and the returns

0:45:30.560 --> 0:45:34.640
<v Speaker 1>they were getting from this spending. Uh, there they became believers.

0:45:34.760 --> 0:45:37.440
<v Speaker 1>And we're seeing an acceleration of the number of brands,

0:45:37.880 --> 0:45:42.840
<v Speaker 1>number of enterprise deals, you know, across these global pharmaceutical companies.

0:45:43.120 --> 0:45:44.840
<v Speaker 1>I think we're in the early stages of this, and

0:45:44.880 --> 0:45:48.480
<v Speaker 1>Optimizes is an elite position here to deliver this kind

0:45:48.480 --> 0:45:50.680
<v Speaker 1>of messaging. Hey, another name that you like because I

0:45:50.719 --> 0:45:53.120
<v Speaker 1>know our audience likes here. I think you mentioned it.

0:45:53.239 --> 0:46:01.799
<v Speaker 1>Voyage Digital. Uh, this is this is a cryptocurrency brokerage service. Uh.

0:46:02.000 --> 0:46:04.640
<v Speaker 1>We've been talking about crypto in regards to infrastructure and

0:46:04.640 --> 0:46:09.600
<v Speaker 1>getting some regulatory rules on the books. Here. What is

0:46:09.600 --> 0:46:11.839
<v Speaker 1>it about Voyager Digital that you in particular like? It's

0:46:11.840 --> 0:46:14.799
<v Speaker 1>about a two point three billion dollar market cap. Yeah,

0:46:14.880 --> 0:46:17.799
<v Speaker 1>a Voyager we found a little less than a year ago,

0:46:18.560 --> 0:46:21.840
<v Speaker 1>very tiny uh, you know, emerging kind of crypto broker

0:46:22.280 --> 0:46:26.160
<v Speaker 1>that was founded by a former senior executive for me Trade,

0:46:26.480 --> 0:46:29.719
<v Speaker 1>former CTO of Uber. We were very very impressed with

0:46:29.719 --> 0:46:32.800
<v Speaker 1>the team they put together and there's their strategy and

0:46:32.840 --> 0:46:35.880
<v Speaker 1>the executions been flawless. Obviously that the market for for

0:46:35.920 --> 0:46:40.120
<v Speaker 1>cryptocurrencies has been booming and they've just been growing well

0:46:40.160 --> 0:46:43.200
<v Speaker 1>ahead of our expectations. And even with the cool down

0:46:43.239 --> 0:46:47.120
<v Speaker 1>and prices, Um, you know, they're still doing exceptionally well

0:46:47.160 --> 0:46:50.399
<v Speaker 1>and they're really carving out a niche. They're not coin based,

0:46:50.440 --> 0:46:52.760
<v Speaker 1>you know, coin bas is still I believe they report

0:46:52.800 --> 0:46:56.720
<v Speaker 1>tonight and obviously one of the largest global players. But Voyager,

0:46:57.160 --> 0:47:00.440
<v Speaker 1>for a small upstart, has done a tremendous job. And uh,

0:47:01.080 --> 0:47:03.680
<v Speaker 1>you know, I've really done a lot of innovative things

0:47:03.680 --> 0:47:06.120
<v Speaker 1>that have a lot of expansion plans that that are

0:47:06.200 --> 0:47:09.840
<v Speaker 1>very promising. What I'm wondering too, rhyme. You know, for

0:47:09.880 --> 0:47:13.120
<v Speaker 1>our audience we talk a lot about crypto obviously, um,

0:47:13.160 --> 0:47:15.200
<v Speaker 1>what would be your advice to them when they look

0:47:15.200 --> 0:47:17.319
<v Speaker 1>at it, because it's still a developing market. There's a

0:47:17.360 --> 0:47:20.600
<v Speaker 1>lot of cryptocurrencies are out there, and I think many

0:47:20.600 --> 0:47:22.360
<v Speaker 1>would say that the dust still has to settle in

0:47:22.440 --> 0:47:24.080
<v Speaker 1>terms of how this plays out. We're waiting to see

0:47:24.120 --> 0:47:26.960
<v Speaker 1>what kind of regulatory oversight ultimately. Will have just got

0:47:26.960 --> 0:47:29.720
<v Speaker 1>about thirty seconds here. How what's your advice to investor,

0:47:29.800 --> 0:47:33.440
<v Speaker 1>especially since you are picking names in this space. I'll

0:47:33.480 --> 0:47:36.200
<v Speaker 1>try to make it quick. We definitely see echoes of

0:47:36.360 --> 0:47:40.040
<v Speaker 1>kind of the emergence of the Internet years prior. People

0:47:40.120 --> 0:47:42.640
<v Speaker 1>understand that it's probably here to stay at this point.

0:47:43.760 --> 0:47:46.760
<v Speaker 1>The technology makes too much sense, there's too much utility

0:47:46.800 --> 0:47:50.080
<v Speaker 1>for it. But they're really trying to wrap their heads around,

0:47:50.440 --> 0:47:52.480
<v Speaker 1>you know, how to value these companies. You know how

0:47:52.480 --> 0:47:55.680
<v Speaker 1>they're going to be implemented, and this adoption is going

0:47:55.760 --> 0:47:58.080
<v Speaker 1>to take some time, and it's gonna be very challenging

0:47:58.160 --> 0:48:01.680
<v Speaker 1>to try to value so the opportunities there, but you

0:48:01.719 --> 0:48:04.040
<v Speaker 1>do have to be careful. All Right, We're gonna leave

0:48:04.040 --> 0:48:06.200
<v Speaker 1>it on that note. Listen, Ryan, thank you so much,

0:48:06.239 --> 0:48:09.880
<v Speaker 1>really appreciate it. Ryan Jacobs, chief investment Officer and portfolio

0:48:09.960 --> 0:48:14.200
<v Speaker 1>manager at Jacob Assett Management, on the phone from Los Angeles.

0:48:14.400 --> 0:48:17.000
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